Manatee County school, county impact fees vital as growth picks up
The Manatee County School Board came up with a reasonable decision on the reinstatement of impact fees charged to developers for new home construction to help pay for district growth as the population increases.
The board intends to phase in the fees over three years, with the first year only seeking half the collection rate, rising to 75 percent the second year before settling in at 100 precent in year three. This is a good compromise to builder concerns, one that helps alleviate an immediate big increase.
As proposed by a Maryland-based consultant that conducted a study for both the school district and the county, the full education impact fee on new construction would be $6,086 for a single-family home; $6,415 for a duplex or townhouse; $3,276 for a multifamily or other style home; and $1,372 for a mobile home.
Those fees are lower than the 2009 charges and far less than the county impact fee, which, since 2011, stands at a minimum of a little more than $11,000 for a 2,000-square-foot, three-bedroom home.
County impact fees pay for the roads, parks, public safety, law enforcement and utilities needed to account for growth. By law, those fees cannot be spent on improvements to existing infrastructure.
Before the unanimous school board vote at Tuesday's meeting, local builders argued against reinstatement at this time -- claiming the economy has not fully rebounded from the Great Recession. County commissioners also heard from developers last week objecting to increases.
The school board handed developers a gift back in 2009 when home construction hit rock bottom and the district suspended the entire impact fee. The county only lowered the charge on new construction.
Upward economic trend
Today, though, the economy is far from dismal. Robust would be a better description. Local unemployment continues to fall, dropping to 5 percent in the Manatee-Sarasota region in September figures. That's down from 5.9 percent the year before and better than the state's 5.3 percent number.
The state unemployment rate stands at its lowest level since 2008. The top job growth sectors include education, health services, trade, transportation, utilities and professional and business services. Manufacturing jobs increased as well, a key component of the county's focus on hiring growth.
The real estate market is surging, too, with Manatee County home sales and prices rising. Major new apartment complexes are also in the mix as are large residential and commercial developments in the planning stages.
Lakewood Ranch-based Neal Communities alone boasted in September that new homes sales are at a pace to set a record across all of its markets this year, which include Manatee, Hillsborough, Sarasota, Lee and Collier counties. The builder is poised to surpass 1,000 home sales this year, an increase of more than 25 percent over last year's sales.
Builders can hardly claim the economy remains mired in a funk.
Home buyers, not builders, pay the fee -- unless developers decide to discount their product.
The school board decision to go somewhat slow on the reimposition of impact fees is a responsible move. County commissioners could take a similar slow approach as decision time nears. Current property owners should not shoulder the costs of growth.
And the board added a caveat -- that if voters approve the extension of the half-penny sales tax for the district, set to expire in 2017, the impact fee would drop to 50 percent of the new requested rate, which must be approved by Manatee County commissioners.
Manatee County is growing quickly and new schools, additions to current ones and a larger bus transportation system are essential to meeting demand, which impacts fees must be spent.
Home builders suggested the school board simply bus students to schools with empty desks as some classrooms are not full. That is a short-term solution to a long-term challenge. Some campuses exceed capacity now.
The consultant, TischlerBise, concluded the district will need to build three elementary schools, one middle school and one high school over the next decade, with East Manatee East Manatee where much of the growth is projected.
Wouldn't it be wise to begin a bank account to pay for future? Manatee County's educational infrastructure requirements cannot be allowed to be set aside. We must begin addressing this today.
This story was originally published November 15, 2015 at 12:00 AM with the headline "Manatee County school, county impact fees vital as growth picks up ."